A new $3,000 State Government-funded subsidy for motorists who purchase a new electric vehicle is part of a bold new $18 million package to help drive the take-up of zero and low emission vehicles in South Australia.
The proposed up-front, time-limited subsidy would be provided to up to 6,000 full electric vehicles purchased in South Australia subject to the Government’s new Motor Vehicles (Electric Vehicle Levy) Amendment Bill 2021 passing Parliament.
The Bill, to be introduced to Parliament today (Thursday), also extends by up to 5 years the introduction of the proposed Electric Vehicle Road User charge from 1 July 2022 to 1 July 2027, or when the sale of electric vehicles reaches 30 per cent of new motor vehicle sales in SA, whichever is earlier.
Treasurer Rob Lucas said the Marshall Government had already made the single largest investment in electric vehicles in the state’s history through its $18.3m Electric Vehicle Action Plan, announced in the State Budget 2020-21 – and this new subsidy package would bring to $36m the total level of Government support for EVs.
“We are committed to investing to help drive the take-up of environmentally friendly zero and low emission vehicles while ensuring there is a long-term sustainable model for critical road funding,” said Mr Lucas.
“Our proposed new $3,000 State Government-funded subsidies for new full electric vehicles are expected to provide a further incentive for those motorists who may be considering a purchase of this type.
“The subsidies, which are consistent in value to those offered in Victoria, are contingent on the Bill passing the Parliament and would be introduced at that time. While we accept that looks unlikely at this stage, we remain hopeful.
“We have consulted widely with industry, manufacturers and other interest groups and, as a result of that feedback, have decided to extend the introduction of the proposed Electric Vehicle Road User Charge by up to 5 years (up to 1 July 2027).
“Currently, drivers of zero and low emission vehicles pay little or no fuel excise.
“But ultimately as the State transitions towards a higher concentration of zero and low emission vehicles, there will be a corresponding reduction in the number of motorists paying fuel excise which contributes to vital road funding to help maintain and improve the state’s road network.
“A road user charge is necessary to ensure that all vehicle owners, regardless of what car they drive, contribute to the upkeep of our roads into the future.”
Modelled on similar schemes in New South Wales and Victoria, the road user charge would be calculated at 2 cents per km (indexed) for plug-in hybrid vehicles, and 2.5 cents per km (indexed) for any other electric vehicles.
The road user charge would be calculated and billed in arrears as part of the vehicle registration process. The charge will be calculated based on the distance travelled since the last registration renewal. This means that for those who pay their registration annually, the first road user charge payment will not occur until a year or more after the relevant commencement date.